review - just scratched the surface so far!

I have just reviewed all the recent presentations and reports by HDR and WPL and I was reminded how the JV has really only scratched the surface so far. This next 12 months exploration campaign is very big (dare I say "huge") and is targeting oil reserves IMHO with only a minor "research/data collection" focus (eg the Dorade committment well). In the next 12 months we will also see unprecedented activity in the Dana/HDR/WPL/ROC JV areas, with drilling in Block 1 late 2004 or early 2005, and most likely follow-up drilling in Block 7 (after the Peliican discovery) and possibly drilling in Block 8 in 1H 2005 (which now has a seismic underway and a new farminee).

Once established as a major new oil province both by the discovery of new fairways and new oilfields in known fairways - we will see another significant rerating of HDR (and WPL I might add). And in the nearer-term once we have Chinguetti funding confirmed and drill ships arriving the sp should get a move on again.

All the debate about the merit or otherwise of investing in HDR and whether it should be valued at $1, $2, $3 or $10 will only be answered by the results of this campaign.

To put Mauritania in context for WPL (and the implications are even greater for HDR) - I also recall WPL saying in 1999/2000 that what they were doing in Mauritania would be their biggest activity since the NW Shelf. And we know WPL statements are conservative - so I am comfortable believing that Mauriutania has the potential to be bigger than the NW Shelf for them long-term (and they know it!) - now that's big! They are highly dependent on Mauritania now for growth and won't be deterred easily I believe.

I've decide to take a break from watching HDR every minute over the next 3-4 weeks (I will be watching but not so intensely) and yes I will be going away on several 2-3 day breaks so there is every chance that the HDR sp will rise and rise!! LOL

Cheers all

H